A decrease in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
Answer: A
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a. if people do not want to alter their existing levels of risk b. if the riskiness or return on one investment is the same as other investments c. if the riskiness or return on one investment changes relative to other investments d. if people do not want to alter their existing levels of consumption
Research by Harvard economists Barro and McCleary revealed that church attendance and economic growth have a(n) _______________ relationship. They also found that specific religious beliefs (in heaven, hell, and afterlife) and economic growth have a(n) ___________ relationship
A) inverse; inverse B) direct; direct C) inverse; direct D) direct; inverse
If Sean sells Susan a DVD player for $30,
What will be an ideal response?
One of the factors causing the shrinking gap between rich and poor countries is
A. learning by poor countries. B. increasing resource discoveries. C. increasing populations in poor countries. D. transfers of income from rich countries.